IDBI Education Rate of Interest

IDBI Bank offers education loan to meet financial needs of students for maximum loan amount upto INR 20 Lacs

  • No margin for a loan up to INR 4 Lacs.
  • The maximum loan limit is INR 20 Lacs.
  • Building/land given for security should be equal to 1.33 times the actual loan.

Rate of Interest charge by the bank depends on the base rate set by IDBI Bank as per the guidelines set by RBI

  • The 1-year MCLR is 9.00%.
  • For loan up to INR 10 Lacs, the RoI is 1 year MCLR+0.85%
  • For loan above INR 10 Lacs, the RoI is 1 year MCLR+1.45%.


Fill the Loan Amount
Fill the Interest Rate
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EMI Payable

1,000 per month

Total Interest


Payable Amount


Total Interest
Principal Loan Amount

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IDBI EducationLoan Eligibility

loan eligibility image
  • Indian National. The student must be a citizen of India or a holder of the Indian passport.
  • 10+2 qualified. One must have cleared 10+2 from a recognized board of institutions.
  • Entrance Exam/Merit Based. Students must have secured admission through merit or entrance exam.
  • Co-Signer. A co-borrower is a must while applying for an education loan

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Applicable Rate of InterestUp to INR 10 Lacs : 1 year MCLR+0.85%
Above INR 10 Lacs:1 year MCLR+1.45%
Up to INR 7.50 Lacs: 10.55%
Above INR 7.50 Lacs: 10.80%
up to INR 7.5 Lacs: MCLR + 2.00%
above INR 7.5 Lacs: 2.60%
Upto 4 Lacs- 16.50%
Upto 7.5 Lacs- 17.50%
Above 7.5 Lacs- 15.50%
Max Loan with Collateral20LacsFor India: 10 Lacs
For Abroad: 20 Lacs
For India: 10 Lacs
For Abroad: 20 Lacs
For India: 10 Lacs
For Abroad: 20 Lacs and beyond based requirement
Max loan without collateral20LacsFor India: 10 Lacs
For Abroad: 20 Lacs
For India: 10 Lacs
For Abroad: 20 Lacs
For India: 10 Lacs
For Abroad: 20 Lacs and beyond based requirement
Processing FeeNilUp to INR 4 Lacs: Nil
Above INR 4 Lacs: INR 5000
Repayment Period15 Years15years15 years7 years
Loan for top institutionsnoYes, SBI Scholar Loan SchemeYes, PNB PratibhaNo
MarginUp to INR 4 Lacs: Nil
Above INR 4 lacs: 5%
For loan above INR 4 Lacs
In India: 5%
In abroad: 15%
Up to INR 4 Lacs - NIL
Above INR 4 Lacs - 5%
Upto loan 4 Lacs: No margin
Above 4 Lacs: for India: 5%
for Abroad: 15%
Age LimitNo Minimum age limit
Maximum (at time of loan maturity)- 50 years
no age limitNo age limitNo
Loan SecurityUp to INR 4 Lacs: No security
From INR 4 to 7.5 Lacs: Third Party Guarantee
Above INR 7.5 Lacs: Tangible security with suitable margin.
Building/ Land equal to 1.33 times of actual loan
Upto 7.50 Lacs: Only Parent/ Guardian as co-borrower. No Collateral Security or third party guarantee
Above INR 7.50 Lacs: Tangible security along with parents as co borrower
Upto INR 7.50 Lacs: Parent(s)/guardian be made joint borrower (s). No tangible Security and /or 3rd party guarantee is required.
Above INR 7.50 Lacs: Parent(s)/guardian be joint borrower(s). Tangible collateral security of suitable value acceptable to bank.
Third party guarantee
Collateral security
Additionally, assignment of LIC policy in favor of bank amounting 100% of education loan amount
Assignment of Future salaries in favor of Axis Bank
Eligibility concession for SC/STNoNo50% for SC/ST, and;60% for General category.No
Processing Time15 days20 days15 days14 Days
Prepayment chargesNilNilNilNil
Penal charges2% p.a. for loans above 4 lakhs for the amount or period overdue.Penal interest @ 2% to be charged for loans above Rs.4 lacs for the overdue amount and overdue periodNil@ 2% per month on the overdue installment/s
Mandatory insurance coverNot mandatoryYesyesyes
Travel expenesesYesyesyesyes
Bank transfter allowanceNo such clause mentionedavailableavailableNo such clause mentioned
Top up loan availabilityAvailableyesavailableunavailable
Interest Subsidy SchemesCSIS
Skill Loan Scheme
Padho Pardesh
Skill Loan Scheme
Padho Pardesh
Skill Loan Scheme
Tax benifitYesyesyesyes
Concession/benefitsReasonable Rate of Interest. IDBI Bank offers around 9.45% of interest.
Loan for students who take admission in management quota
Zero Pre-payment or documentation charges
Concession to girl students
1% concession if interest is serviced during moratorium period including course period
0.5% concession to girl students
0.5% concession if interest is serviced during moratorium period including course period
Online application
There is no processing fee charged
No pre- payment charges are applied
No pre- closure charges are applied
Loan Disbursal period is 15 working days from the date of final submission of documents

How to apply for IDBI Education Loan ?

IDBI Education loan application form can be available online or offline at Bank branches.

Visit the official website for IDBI Bank Education Loan.

Click on Apply Now

Fill out the form with essential details.

Upload the mandatory documents required.

Submit the form and take out a print out of the application.

Visit the bank's branch for further formalities.

Applicants can directly visit the nearest branch and ask for an application form. The bank representative will then guide them with all the necessary information regarding eligibility, documents required and also which loan is best suitable.

IDBI Education Loan Details

Loan Limit
INR 20 Lacs
Up to INR 4 Lacs: Nil
Above INR 4 lacs: 5%
Processing Fee
Loan Security
Up to INR 4 Lacs: No security required
From INR 4 to 7.5 Lacs: Third Party Guarantee
Above INR 7.5 Lacs: Tangible security with suitable margin.
Building/ Land equal to 1.33 times of actual loan
Loan Repayment
15 years

Expenses covered under IDBI Student Loan Scheme

  • Tuition Fee
  • Examination Fee
  • Library/ Laboratory Fee
  • Hostel Fee
  • Cost of Books, equipment, instrument or uniforms.
  • Miscellaneous expenses- study tours, project work, thesis, etc.
  • A reasonable cost of computer or laptop (if required).
  • Insurance premium for student borrower.

Education Loan Documents Required ?

Admission letter along with fee structure, mark sheets, etc.

Attested copies of age proof, residence proof

Two recent passport size photographs of applicant, co-applicant and guarantor

Mark sheet of recently qualified public exam for school, college in India.

Salary Proof including latest salary slip, Form 16 and recent salary certificate.

Proof of course.

Copy of passport (if required).

Interest Subsidy Schemes

Central Scheme of Interest Subsidy (CSIS)

Formulated by the Govt. of India, a scheme to assist the students belonging to the economically weaker section.

Skill Loan Scheme

The bank offers 'Skill Loan Scheme' for students who aspire to gain knowledge and specialized training in one specific field.


Frequently Asked Questions


What schemes does IDBI Bank considers for its education loans?

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There are multiple other schemes offered by IDBI Bank apart from the basic education loans viz. Education Loan for Vocational Courses, Education Loan for Non- Vocational Courses, Education Loan for students who secure admission through Management Quota, and Education Loan for Specialised Courses. The Scheme are:

  • CSIS Scheme
  • Padho Pardesh
  • Skill Loan Scheme
  • Udaan- Unique saving cum Education Loan

In whose name is the loan granted?

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The loan is granted in the name of the student


Is the loan contract executed only in student's name?

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No, the loan can be executed both in name of student and co-borrower as both are equally responsible for repayment of loan.


What is the age limit for availing loan in IDBI Bank?

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  • Education Loan for Vocational/ Non-Vocational Courses:There is no age restriction for the applicant applying for education loan from IDBI Bank. He/ she should only meet the other stated eligibility criteria’s.
  • Education Loan for Students admitted through Management Quota:Minimum age limit for salaried and Self Employed is 21 years and maximum is 65 years and 70 years respectively.

Are minors eligible to apply for IDBI Bank Education Loan?

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Yes, Minors aspiring for further studies can apply for education loan with help of legal representation from parents/ guardians.


What does margin on any loan mean?

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Margin amount is the amount that a borrower has to pay through his/ her own sources in form of a down payment as his/ her contribution towards the education.


Should the student's margin be paid upfront in the starting?

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Margin can be paid on a year to year pro rata basis whenever bank disburses loan amount as per requirement.


Where can I avail IDBI Bank Education Loan?

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You can either contact your nearest branch for the application form or details regarding the loan or apply online from the official website.


Is there any provision to apply for loan online?

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Yes, you can apply online through Vidyalakshmi portal to avail for this loan.


Can I view my loan statement online if I am an existing education loan borrower?

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Yes, by creating a login on IDBI Bank web portal, you can view all details related to education loan online.


Is there any minimum aggregate marks to meet the eligibility criteria to avail IDBI Bank education loan?

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Yes, a student must have secured a minimum aggregate marks in their last qualifying examination (10+2 or Graduation). Relaxation in the marks is given to SC/ ST students


What is the discount/ rebate offered by IDBI Bank?

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  • 0.50% concession is given to physically handicapped girl students
  • Eligibility criteria and margin on education loan is relaxed for SC/ST students and physically handicapped students

What all is included in tangible collateral security?

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Mostly IDBI Bank asks tangible security in lieu of the loan amount sanctioned along with assignment of future salaries in favour of IDBI Bank. Tangible security includes documents related to land/ building/ government security/ public sector bonds/ units of UTI, NSC, Life insurance policy/ bank deposits/ shares or debentures. The value of the security should be equal to the education loan amount.


Can I place my family property as collateral?

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Yes, but it will need consent of all family members involved.


Is scholarship or assistantship included in the margin?

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Yes any scholarship or assistantship will be a part of margin charged on education loan.


What is Moratorium Period?

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Course Period plus one year, or six months after getting a job


What is tenure of an education loan?

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Tenure of education loan provided by IDBI Bank is different for different variant of loans it offers:

  • Education Loan for Vocational Courses: 10- 15 years
  • Education Loan for Non Vocational Courses: 2- 7 years
  • Education Loan for students admitted through Management Quota: 10 years
  • Education Loan for Specialised Courses: Maximum 7 years

What does MCLR stands for?

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MCLR stands for Marginal Cost of funds based Lending Rate. It refers to the minimum interest rate of bank below which it cannot lend.


What all expenses are covered under this course?

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Expenses covered by IDBI Bank education loan are:

  • Tuition/ college/ hostel fee
  • Examination/ lab/ library fee
  • Books/ uniform/ instruments
  • Caution deposit
  • Passage money for studies abroad, etc.

I have taken admission through management quota. Am I eligible?

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Yes, The bank provides special loan variant for students who take admission through management quota.


What do you mean by reputed or recognized institutes?

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Institutes that are affiliated to state/ central universities and comes under UGC or AICTE are considered as recognized institutes. Reputed institutes are those which are well known and have standard course of repute. More often, banks provide the list of institutes they consider for loan. (You can contact nearest branch for the same)


Are there any special benefits if I have secured admission to one of the top premier institutes?

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IDBI Bank provides 1.5% concession to students who have secured admission in any premier institutes. The rate of Interest charged for students taking admission to top premier institutes is 6M MCLR + 0.05%


What is the processing fee or prepayment charges?

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The education loan offered by IDBI Bank have:

  • Prepayment Charges: 2% on outstanding amount id loan is foreclosed/ part prepaid any time before the expiry of moratorium period.
  • Processing Fee: No processing fee is charged for studies in India under Education Loan for Vocational/ Non Vocational Courses. 1% processing fee is charged for students who take admission through Management Quota.

Will cost of my computer be covered under the loan sanctioned?

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Reasonable cost for the computer or laptop well be covered under the loan if it is required to complete the course.


Why is Pan Card necessary?

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Pan Card is one of the mandatory document required by banks these days. It is mandatory because:

  • Easy to assess Income
  • Easy to trace borrowers

Are diploma or certificate courses considered under IDBI Bank education Loan (both for India and Abroad)?

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Diploma courses are eligible under IDBI Bank Education Loan. Regular degree or diploma courses like, shipping, pilot training, and aeronautical that are approved by Director General of Civil Aviation or Shipping.


Is a co-borrower necessary for loan?

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Yes, it is mandatory to have a co-borrower to avail loan from IDBI Bank.


Who can be my co-borrower?

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Your parent/ spouse/ guardian can be a co-borrower. A co-borrower should be your immediate family member, should have a steady source of income, and a good credit history.


What all documents are required from the co-borrower?

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Documents required from the co-borrower are:

  • Attested copies of age proof, residence proof and birth date.
  • Self-attested passport size photograph
  • Income proof and/or copy of income tax return file
  • Details of collateral security along with government approved valuation certificate (if any).

How many guarantors do I need to borrow loan from IDBI Bank?

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You need at least 2 guarantors to avail loan from IDBI Bank.


What is the KYC requirement in education loan?

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KYC requirements are the documents as a proof of personal identification and residence proof of the applicant as well as the co-borrower.


What are maximum term for repayment?

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  • Education Loan for Vocational Courses:For loan amount upto INR 7.50 Lacs- 10 years and for amount above INR 7.50 Lacs- 15 years
  • Education Loan for Non Vocational Courses: Loan upto INR 50,000: upto 2 years; Loan from INR 50,000 to 1 Lac: 2 to 5 years; Loan Above INR 1 Lac: 3 to 7 years
  • Education Loan for students admitted through Management Quota: Moratorium period + 10 years
  • Education Loan for Specialised Courses: Maximum 7 years

    How can I repay the loan?

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    You can repay the loan after the moratorium period by mode of EMI or through post- dated cheques.


    What is EMI? How are they calculated?

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    EMI stands for Equated Monthly Installments. It can be calculated by using the formula given below

    • EMI = [P x R x (1+R) ^n] / [(1+R)^ n-1]
    • Here, P is Amount of Education Loan, R is Rate of Interest, n is Tenure of the Loan.
    • Or simply you can use the EMI calculator provision available on IDBI Bank’s official website.

    What are the charges for late EMI payment?

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    24% per annum on outstanding amount is charged for the late EMI payment and INR 500 for every bounced cheque.


    Is the loan disbursed in name of individual applicant or to the institute/ university directly?

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    The loan is disbursed directly to the institute/ university that you have taken admission to. Hence, an applicant is supposed to submit institute brochure with proper division of the fee


    If I am unable to complete my course in given tenure, will my repayment term be extended?

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    It is completely on the banks discretion to extend the moratorium period or not. It can be extended for maximum 2 years based on student?s reason. You can contact your nearest branch for more details.


    What is method of application of interest on education loan?

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    The interest will be charged at simple rate from the date of disbursement till commencement of repayment of loan. After that, compound interest is charged on reducing balance.


    If I am joining the course soon after current course, can I get an extension?

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    Mostly, in such cases, you do not get an extension and even if you do there is a possibility that interest rates are higher


    What is interest rate of education loan?

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    The interest rate is different for different loan offered:

    Education Loan for Vocational Courses:

    Loan amount upto INR 10 Lacs1 year MCLR + 0.85%
    Loan amount above INR 10 Lacs1 year MCLR + 1.45%

    Education Loan for Non Vocational Courses: The rate of interest on all amounts is 11% (BR+1%) along with 1 year MCLR +1.35%

    Education Loan for students admitted through Management Quota: The present rate of interest is 13.50% (BR + 3.50%)


    What is interest subsidy on education loan?

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    IDBI Bank offers

    • Interest Subsidy scheme for economically weaker sections and to promote education amongst them
    • Skill Loan Scheme- for students who wish to pursue Skill based courses and enhance their skills and career prospects.
    • Padho Pardesh scheme for students who wish to pursue studies abroad
    • Udaan – For parents/ guardians of students studying in 8th or 10th class. It is a unique scheme formulated as saving cum education loan scheme.

    What documents do I need to submit to avail interest subsidy scheme?

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    The documents that need to be submitted are:

    • Income certificate issued by authorised authorities
    • Bonafide student certificate
    • Letter of undertaking or declaration signed by borrower/ co-borrower

    What is employment verification in an education loan?

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    The bank takes the responsibility to cross verify all the employment details of the applicant and co-borrower. If the banks fails to cross verify every detail provided, it might reject the loan application.


    Are there any tax benefits in education loans?

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    Under Section 80E of Income Tax Act, loan borrowers can avail the tax benefits. This benefit is only available over and above INR 1,50,000. Tax benefits can be availed once the borrower starts paying interest on loan. The deduction is available until borrower pays off full interest amount on loan or for maximum of 8 years (whichever is earlier).


    Is it necessary to have bank account with the bank while availing loan from that particular bank?

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    It is not necessary to have a bank account while availing the loan but it makes it easier for the borrower to get loan application approved.


    Why do banks require insurance policy as security?

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    The banks require insurance policy as security in lieu of education loan provided. The insurance policy should be equal or more to the amount of loan sanctioned. In case of untimely demise of the borrower, the bank recovers the amount from the insurance policy


    Are there any additional benefits on availing loan from IDBI Bank?

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    There is no additional benefit mentioned on the official website while applying fro


    What is credit score? Is it important for education loan?

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    Credit Score is inclusive of various factors such as credit history (Loan history or credit card). If a student does not have a credit score, banks calculate it by considering factors such as University, College and the Course of admission. Banks consider the academic background of student and credit history of co-borrower.


    If a student have any query, where or whom to contact?

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    student can reach out to the nearest branch in case of any query.

    Customer Care Number:

    Toll Free: 1800 200 1947; 1800 22 2070

    Non Toll Free: (+91 22) 6693 7000

    Local rates apply on every call

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